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Investor PresentationJanuary 2020
2
Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by PNB Housing Finance Ltd
(the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or
invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any
contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a
statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable,
but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on,
the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may
not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the
contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and
business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not
guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are
difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of
the economies of various international markets, the performance of the industry in India and world-wide, competition, the
company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological
implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences
and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or
achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company
assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking
statements and projections made by third parties included in this Presentation are not adopted by the Company and the
Company is not responsible for such third party statements and projections.
3
About PNB Housing Finance
4
Leading Housing Finance Company…
Disbursement
INR 15,800 Crore* (US$ 2,215 mn)
Asset Under
Management
INR 86,297 Crore (US$ 12,097 mn)
Write-offs since Inception
(on cumulative
disbursement)
7 bps
Deposits
INR 16,470 Crore2nd largest deposit taking
HFC
Average Cost of
Borrowing
8.30%*
4 delivery
/processing units
ISO certified 9001
GNPA
1.45% on AUM
1.75% on Loan Assets
Retail Loans
82% of the AUM
105 branches
with presence in 64unique cities
Book Value Per Share
INR 495.0
*Data for 9MFY201 Crore= 10 mn Data as on 31-Dec-19All US$ numbers in the presentation are converted at 1US$ = INR 71.34
5
…incorporated in 1988
• Launched business
process re-engineering
project- “Kshitij”
• AUM: ~INR 3,000 Crore
• DEPL raises
stake from
26% to 49%
1 QIH (Quality Investment Holdings) is an affiliate of Carlyle Asia Partners IV, L.P.
2 *Source: Great Place to Work Institute (GPTW)
• Company
incorporated
• Destimoney
Enterprises
Private
Limited
(“DEPL”)
acquired 26%
stake in the
Company
• Introduced new
brand image
• Robust and
scalable target
operating model
(“TOM”)
implementation
commenced
1988 2009
2010
2011
2012
2015
2016
• DEPL, acquired
by QIH, the
Carlyle (1)
• First HFC to
issue Green
Bonds to IFC
• IPO - Raised
INR 3,000 Crore
• AUM crossed
INR 25,000
Crore
2017
• AUM crossed INR
50,000 Crore
• Deposits: Over INR
10,000 Crore
• Certified as a
“Great Place to
Work” by building a
‘High Trust, High
Performance
Culture’*
• Incorporated a
subsidiary ’’PHFL
Home Loans &
Services Ltd’’
2019
• Included in
MSCI Global
Small Cap
Index
• Raised ECB
of US$
465mn (INR
3,324 crore)
2014
• AUM crossed
INR 10,000
Crore
2018• AUM crossed INR
85,000 Crore
• Expanded to over
100 branches
• PAT crossed INR
1,100 crore
6
HFC Sector well placed…
7
India’s Mortgage Market
Indian mortgage market is significantly under-penetrated
Mortgage to GDP Ratio (%)
Under penetrated mortgage market, rising urbanization coupled with increase in housing demand is leading to mortgage market
expansion
Ramp-up expected in Indian mortgage market
Trend in urbanization of population
Significant urban housing shortage
82%
69%63%
50%45%
36% 34% 31%
20% 18% 18%
10% 13%
Sw
eden
United
Kin
gdom
United
Sta
tes
Sin
gapore
Honk K
ong
Germ
any
Mala
ysia
Kore
a
Thailand
Chin
a
South
Afr
ica
India
India
(M
ar'23E
)
Loan Assets (INR trillion)
Source: ICRA (a division of Moody’s) ReportsSource: United Nations Department of Economic and Social affairs, IMF
8.8 10.4 12.3
14.2 16.6
19.1 21.9
26.1
31.0
36.9
Ma
r-14
Ma
r-15
Ma
r-16
Ma
r-17
Ma
r-18
Ma
r-19
Mar-
20E
Mar-
21E
Mar-
22E
Mar-
23E
+17% CAGR
+19%CAGR
EWS, 39.5%
LIG, 4.4%
MIG & above, 56.2%
Split of Urban Housing Shortage in FY2012 – 18.8 mn units
Source: Ministry of Housing and Urban Poverty Alleviation Source: ICRA, Moody’s Indian subsidiary, Reports
1,498 1,482 1,4861,610 1,639
1,749
1,9832,135
2,242
31%32%
32%32%
33%
33%34%
34% 34%
30%
31%
32%
33%
34%
35%
0
500
1,000
1,500
2,000
2,500
2011 2012 2013 2014 2015 2016 2017 2018E 2019E
GDP Per Capita ($) Urbanisation%
8
Mortgage Sector Growth: Limited Interest Rate Sensitivity
10.8%10.0% 10.2% 10.2%
9.6%8.7% 8.4% 8.8%
8.3%
14%11%
15%
18%17%
18%
15%
13%
19% 19%
22%
26%
20%21%
17% 17%
22%
9%10%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Jun-19
Leading Bank Home Loan Rate Overall Growth Banks Growth HFC's/NBFC's Growth
Source: ICRA reports
Lower Credit Growth despite easing interest rate cycle and abundant liquidity
9
Sustainable Growth of HFCs
Total Loan of all HFCs: INR 10.5 trillion
as on Jun-19
Source: ICRA Indian Mortgage Finance Market Update for June 2019
% Change is YoY
* As on March 2019
Portfolio Composition of all HFCs
as on Jun-19
62%15%
22%
1%
Home Loan LAP Construction Finance Others
Portfolio Growth of HFCs
Top 5 HFCs: 82%21%
26%
22%
26%
30%
15%13%
20%
22% 20% 19%
24%
10%
6%
19% 21% 19% 16%22%
8%
3%
Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Jun-19
Other Loans Overall Portfolio Home Loans
39.7%
18.8%
8.5%
8.2%
7.2%
1.8%
1.7%
1.1%
12.9%
HDFC LICHF DHFL*
IBHFL PNBHFL CanFin
Gruh Repco Others
10
Government Initiatives
11
Growth Drivers
FinancersHome Buyers Developers
Improved AffordabilityUrbanization Changing Demographics
• GST rate cut from 12% to 5% on
under-construction property
• RERA enhances transparency
and delivery visibility to buyers
• Incentives from PMAY subsidy
and tax deductions
• 90% of government run pension
fund EPFO can be withdrawn for
house purchase
• RERA results in higher
developers accountability
• 100% tax exemption on
affordable housing construction
for developers
• Faster building permissions
• Infrastructure status for affordable
housing, enabling easier institutional
credit
• RBI, SEBI and IRDA have coordinated
policies to ease access to funding
• Reduction in risk weights
• NHB Regulation wrt Deposit to NoF,
CRAR and Gearing
• More effective recovery law (SARFAESI)
12
PMAY-CLSS
Effective Interest Rate of ~2.63% post PMAY and Tax Benefit
Source: ICRA, Report* Applicable on Construction, Improvement, Extension
Category
Loan Tenure (Years)
Household Income (INR Lakhs per annum)
Interest Subsidy
Carpet Area (Sq. Mtr.)
NPV Discount Rate (%)
Maximum Interest Subsidy Amount (INR)
Loan Amount eligible for subsidy (INR Lakhs)
EWS LIG MIG I MIG II
3
267,280
6
6.5%
20
30*
9%
6
267,280
6
6.5%
20
60*
9%
12
235,068
9
4%
20
160
9%
18
230,156
12
3%
20
200
9%
Changes / Inclusion in the scheme effective 1-Jan-17
• Existing scheme renamed as PMAY-CLSS for EWS/LIG
• Maximum tenure changed from 15 to 20 years
• Scheme extended to Middle Income (MIG) available upto March 2020
13
Sector Initiatives by Government
All these measures will boost liquidity in the HFC sector
Additional liquidity support of
INR 10,000 Crore totalling to
INR 30,000 Crore to NHB for
further lending to HFCs
On-lending of housing loans upto
INR 20 lakhs qualifies under PSL
Relaxation in ECB end use to
PMAY along with affordable
segment
Reduction in Corporate tax rate by 10%
from 34.9% to 25.17%
Enhancement of bank’s exposure limit
to 20% of the Tier-I capital as against
15% for single NBFC
AIF of INR 25,000 Crore for
real estate sector
Relaxation in the minimum holding
period to six months for securitisation
14
Liquidity Position
15
Long Term Resource Mobilisation
Securitiza
tion
ECB
Resource
Mobilisation
• 2nd highest deposit mobilizer
among HFCs; mobilized INR 7,649
crore during 9MFY20
Deposits
DepositsBank Term
Loan
• Raised US$ 175 mn (INR
1,211 Crore)
ECB
• Borrowed INR 11,000 Crore during
9MFY20; existing relationship with
31 banks
Bank Term Loan
• Raised Non Convertible
Debentures aggregating to
INR 3,000 Crore
NCDs
NCDs
Incremental resource mobilization of INR 33,320 crore in 9M FY20
Maintained enough Cash & Liquid Investments of INR 9,258 Crore as on 31-Dec-19 with reduced exposure to
Commercial Papers
• Securitized INR 9,241 Crore through Direct
Assignment in 9M FY20 with outstanding
pool at INR 17,103 Crore as on 31-Dec-19
Securitization
16
Incremental Resource Mobilization
• Mobilized over INR 60,000 Crore in last 5 quarters
• Focus on Long term borrowing with Commercial Paper exposure reduced to 3% as on 31-Dec-19 from 12% as
on 31-Dec-18
Multiple fund raising avenues led to Consistent resource mobilization Quarter on Quarter
Post Liquidity Issues
13,896
11,806 11,55012,057
12,937
Q3FY19 Q1FY20Q4FY19 Q2FY20 Q3FY20
(INR Crore)
Includes quarter end Overdraft facility
17
Deposits
9,987
97,217
11,586
96,754
14,315
153,588
16,470
226,742
31-Mar-17 31-Mar-18 31-Mar-19 31-Dec-19
Deposit Outstanding No. of Deposit Accounts
Deposits as
% of total
resources
26% 19% 17% 19%
(INR Crore)
18
Asset Liability Maturity profile
Graph as on 31-Dec-19
(INR Crore)
Based on standalone IND-AS Balance sheet
1,842
5,353 5,741
10,671
17,298
13,505
27,241
1,620
4,7195,535
11,647
20,345
17,209
20,575
upto 1 month 1-3 months >3-6 months >6-12 months 1-3 years 3-5 years >5 years
Total Assets Total Liabilities
Particulars As Onupto 1
month1-3 months
>3-6
months
>6-12
months1-3 years 3-5 years >5 years
Cumulative
Inflow/(Outflow)31-Dec-19 221 856 1,062 85 (2,962) (6,666) 0
Significant reduction in short term ALM gaps through long term borrowings
1 Crore = 10 mn
Cumulative
Inflow/(Outflow)31-Mar-19 37 47 (937) (1,959) (5,723) (9,989) 0
19
Financial Performance of the Company
20
Stable Performance QoQ
3.18%
Q3FY19 Q2FY20Q4FY19 Q1FY20 Q3FY20
3.06% 3.14% 3.19%2.98%
Q4FY19Q3FY19
3.39%
Q2FY20Q1FY20 Q3FY20
3.44%3.51% 3.42%3.04%
Q3FY20Q3FY19
19.89%
Q2FY20Q4FY19 Q1FY20
19.48%
16.18% 16.78%18.57%
9.70 9.63 9.36 9.048.57
Q2FY20Q3FY19 Q4FY19 Q3FY20Q1FY20
12.04%11.37%
2.98%3.12% 2.98%
31-Dec-18 31-Mar-19
15.67%15.13%
30-Sep-19
11.00%
13.98%3.09%
30-Jun-19
12.69%
2.97%
14.09%
31-Dec-19
14.49%
17.06%
Tier 2 Tier 1
Stable NIM… ..and Gross Margin… ..supported by improving Cost To
Income…
..and Average Gearing..with better Capital to Risk Asset Ratio#…
#CRAR based on I-GAAP Numbers
Gearing as on 31-Dec-19 is 8.48x
21
Highlights – Q3FY20 vs Q3FY19
Ratios are calculated on Monthly Average
Opex to ATA is calculated as Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisition Cost – ESOP cost - CSR cost)/Average Total Assets as per Balance sheet
P&L numbers are as per Ind AS
1 Crore = 10 mn
*Retail and Corporatedisbursement degrew by 26%(YoY) and 84% (YoY)respectively
9,345
3,196
Q3FY19 Q3FY20*
-66%
Disbursement (INR Crore)
79,73786,297
31-Dec-18 31-Dec-19
+8%
AUM (INR Crore) NII (INR Crore)
558 566
Q3FY19 Q3FY20
+1%
PAT (INR Crore)
303
237
Q3FY20Q3FY19
-22%
Opex to ATA
0.56%
Q3FY19 Q3FY20
0.67%
-17 bps
22
Highlights – Q3FY20 vs Q3FY19
Ratios are calculated on Monthly Average
Gross Margin is net of acquisition cost
For the calculation of ratios P&L numbers are considered as per Ind AS
Average Cost of BorrowingAverage Yield Spread
Q3FY19 Q3FY20
10.74%10.77%
-3 bps
8.21%
Q3FY19 Q3FY20
8.21%
Q3FY20Q3FY19
2.56% 2.53%
-3 bps
NIM
Q3FY20Q3FY19
2.98%3.06%
-8 bps
Gross Margin
Q3FY19 Q3FY20
3.39%3.04%
-35 bps
23
Expected Credit Loss (ECL) Provisions
Classification of the Assets based on the ECL computation under Ind AS:
1 Crore = 10 mn
*For ECL computation, interest overdue upto reporting date is considered.
Particulars (INR Crore) 31-Dec-19 30-Sep-19 31-Dec-18
Gross Stage 3 (GNPA) 1,212.76 624.06 335.36
% portfolio in Stage 3 (GNPA%) 1.75% 0.84% 0.47%
ECL Provision Stage 3* 344.83 138.93 76.19
Net Stage 3 867.93 485.13 259.17
Coverage Ratio % Stage 3 28.43% 22.26% 22.72%
Gross Stage 1 & 2 67,980.97 73,728.84 70,381.89
% portfolio in stage 1 & 2 98.25% 99.16% 99.53%
ECL Provision Stage 1 & 2 540.04 586.21 359.44
Net Stage 1 & 2 67,440.93 73,142.63 70,022.45
ECL Provision % Stage 1 & 2 0.79% 0.80% 0.51%
Total Assets 69,193.73 74,352.90 70,717.25
% portfolio 100.00% 100.00% 100.00%
ECL Provision 884.87 725.14 435.63
Net Stage 68,308.86 73,627.75 70,281.62
Total ECL Provision % 1.28% 0.98% 0.62%
Steady State Provision 168.54 168.54 156.54
Total Provision (including Steady state Provision) 1,052.87 893.68 592.17
Total Provision (including Steady state) / Total Assets (%) 1.52% 1.20% 0.84%
Provision Coverage Ratio (%) 87% 143% 177%
24
Expansion Led Growth and Unique
Operating Model
25
Business Operations
No. of BranchesBranches – Point of Sales & Services
Hubs – Fountain head for Decision Making
AUM - Geographical Distribution
27
7
8
15
FY16FY15FY14
0
5
FY18 FY19FY17
105
2
9
9MFY20
16
Total
3
632
21
18
No. of Branches
Unique Cities*
64
Geography Hub Branches
North 8 33
South 8 35
West 7 37
Central Support Office
Disbursement Origination
(9MFY20)
57%
43%
In-House
DSA30%
29%
41%North
South
West
New Branches (opened in FY18,
FY19 & 9MFY20) contribute
~23% of Retail Disbursement
*Unique cities are part of BranchesMap not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness.
26
Consistency in Underwriting with advent of Technology
Scalable Hub and Spoke Model
Banking analytics tool to give indepth, easy & faster analysis
for self employed retail customers
Fraud control to mitigate fraud incidence
Real time email verification to avoid mis identity of borrowers
Underwriting vendor platform to assist partners “on the go’’
through various tools viz geo tagging, click to upload etc
Digitisation; amalgamation of
people, process and technology for
customer convenience &
eliminating transit risk
Robotic intelligent mailing solution
to ensure standard, confidential and
accurate communication
Omni Channel CRM solution
which integrates various
modes of communication with
the customers for better
experience and faster
resolution
DSA PHFL
File received at
hub
Fountain head
for decision
making
Fraud Control
Unit
Legal Team
Collection
Team
Technical
Service
Underwriter reviews
the reports, does the
financial assessment
and finally decides
on the loan
application
Digital
Platform
Field
Investigation
Lead
Aggregators
Customer acquisition /
servicing
Underwriting Post Disbursement Operations
CPC
COPS
Spokes Regional Hub Central Operations
DSA: Direct Sales Agent; DST: Direct Sales Team
27
Robust Risk Buying Processes
Specialization
• Professionally
qualified with vast
mortgage experience
• Stable and vintage
cadre of senior
personnel
• Specialized roles,
distinguished
responsibilities but
collective decision
making
• Predictable service
standards
Customer profiling
• Selective approach to
customer profiling
• Evidence based
income assessment
and established
banking relationship
• Seasoned mass
affluent customers with
multiple assets and
credit tested
• Mandatory touch
base with self
employed customer at
their work premises
Other mitigating
measures
• Mark to Market policies
with tailor made
offering
• Multiple checks and
balances with maker-
checker approach
• Workflow based
assessment on single
IT platform
• Use of technology in
verification of customer
data points and geo
tagging of properties
3C Approach
• 3C approach: Counsel,
Collect and Cure
• Periodical portfolio scrub
for early warning
signals
• Efficiencies through
centralised banking
• In house contact center
• Special cadre for
resolution through legal
tools
• Collections on-the-go
through mobility for
effective supervision
Underwriting to Collections
An independent internal audit function for all departments and processes, directly reporting to Audit Committee of Board
Multi pronged control mechanism coupled with regular portfolio review
Enterprise Risk Management framework
28
Strong Business growth
38,53157,014
74,023 69,194
31-Mar-1931-Mar-17
41,492
31-Mar-18 31-Dec-19
62,252
84,722 86,297+43%
Loan AssetsAUM
Asset
1 Crore = 10 mn
(INR Crore)
20,639
33,19536,079
15,800
FY18FY17 FY19 9MFY20
+32%
Disbursement
29
Moderate NPAs in a seasoned Book
(INR Crore)
Non-Performing Assets
2-years lagged NPA*
0.50 0.60
0.500.67
0.901.00 1.001.20
1.60
2.10
31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19
PNB Housing Other HFCs
One of the lowest NPA among the leading HFCs while maintaining sufficient provisions1 Crore = 10 mn
*Source: CRISIL
Total Provisions
157 168
436
885
177%
87%
-150%-149%-149%-148%-147%-147%-146%-145%-145%-144%-143%-143%-142%-141%-140%-140%-139%-138%-138%-137%-136%-136%-135%-134%-134%-133%-132%-132%-131%-130%-130%-129%-128%-128%-127%-126%-126%-125%-124%-123%-123%-122%-121%-121%-120%-119%-119%-118%-117%-117%-116%-115%-115%-114%-113%-113%-112%-111%-111%-110%-109%-109%-108%-107%-106%-106%-105%-104%-104%-103%-102%-102%-101%-100%-100%-99%-98%-98%-97%-96%-96%-95%-94%-94%-93%-92%-92%-91%-90%-89%-89%-88%-87%-87%-86%-85%-85%-84%-83%-83%-82%-81%-81%-80%-79%-79%-78%-77%-77%-76%-75%-75%-74%-73%-72%-72%-71%-70%-70%-69%-68%-68%-67%-66%-66%-65%-64%-64%-63%-62%-62%-61%-60%-60%-59%-58%-58%-57%-56%-55%-55%-54%-53%-53%-52%-51%-51%-50%-49%-49%-48%-47%-47%-46%-45%-45%-44%-43%-43%-42%-41%-41%-40%-39%-38%-38%-37%-36%-36%-35%-34%-34%-33%-32%-32%-31%-30%-30%-29%-28%-28%-27%-26%-26%-25%-24%-24%-23%-22%-21%-21%-20%-19%-19%-18%-17%-17%-16%-15%-15%-14%-13%-13%-12%-11%-11%-10%-9%-9%-8%-7%-7%-6%-5%-4%-4%-3%-2%-2%-1%0%0%1%2%2%3%4%4%5%6%6%7%8%8%9%10%10%11%12%13%13%14%15%15%16%17%17%18%19%19%20%21%21%22%23%23%24%25%25%26%27%27%28%29%30%30%31%32%32%33%34%34%35%36%36%37%38%38%39%40%40%41%42%42%43%44%44%45%46%47%47%48%49%49%50%51%51%52%53%53%54%55%55%56%57%57%58%59%59%60%61%61%62%63%64%64%65%66%66%67%68%68%69%70%70%71%72%72%73%74%74%75%76%76%77%78%78%79%80%81%81%82%83%83%84%85%85%86%87%87%88%89%89%90%91%91%92%93%93%94%95%95%96%97%98%98%99%100%100%101%102%102%103%104%104%105%106%106%107%108%108%109%110%110%111%112%112%113%114%115%115%116%117%117%118%119%119%120%121%121%122%123%123%124%125%125%126%127%127%128%129%129%130%131%132%132%133%134%134%135%136%136%137%138%138%139%140%140%141%142%142%143%144%144%145%146%146%147%148%149%149%150%151%151%152%153%153%154%155%155%156%157%157%158%159%159%160%161%161%162%163%163%164%165%166%166%167%168%168%169%170%170%171%172%172%173%174%174%175%176%176%177%178%178%179%180%180%181%182%183%183%184%185%185%186%187%187%188%189%189%190%
-100
100
300
500
700
900
1,100
1,300
31-Dec-18 31-Dec-19
ECL Provision Steady State Provision PCR
• Gross NPA on AUM at 1.45% and on Loan
Assets at 1.75%
• Excluding the three corporate book accounts,
which were that informed as stretched in May
2019, the Gross NPA is at 0.88% of Loan Assets
• Collection efficiency of 97.8% for 9M FY20
• Prudent approach towards building provisions
0.47% 0.48%
0.85% 0.84%
1.75%
0.37% 0.38%
0.67% 0.65%
1.44%
31-Dec-18 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19
GNPA NNPA
30
Sustainable Portfolio Mix
31
Asset Under Management
Corporate Retail
79%
31-Mar-18
80%
18% 21%
82%
31-Mar-17
20%
31-Mar-19
18%
31-Dec-19
82%
Consistent Segment Mix
Segment-wise Breakup
Salaried45%
Self-Employed
37%
Corporate18%
59%
19%4%
12%
4%
2%
18%
Individual Housing Loans
Retail Loan Against Property
Retail Non- residental Premises Loans
Construction Finance
Corporate Term Loan
Lease Rental Discounting
Product-wise Break-up As % to AUM
Retail 82%
Data as on 31-Dec-19
32
Loan Assets Walk and Securitized Pool Highlights
86,297
69,194
17,103
SecuritizationAUM Loan Assets
Asset Bridge
(INR Crore)
Highlights of Securitized Pool
• Sold Corporate Finance portfolio worth
INR 1,963 Crore during 9MFY20
• Help in improving CRAR
• Reported AUM is net of Sell Down portfolio
Highlights of Sold Portfolio
• Developed expertise in Securitization
• Securitization done through Direct Assignment
Route
• Securitized book (IHL and LAP) outstanding at
~20% of AUM
• Substantial demand from public / private sector
Banks & NBFCs for pool buyout
• Superior asset quality; GNPA at 0.20% with
average MOB of 35 months as on 31-Dec-19
33
Retail Focused Lending Operations
Retail segment contribute 92% of the 9MFY20 disbursement
Focus on mass housing segment
Loans given as Individual Housing Loans, Loan Against Property and Non Residential Premises Loans
Established expertise in self employed segment; mandatory touch base with customers, evidence
based income assessment and banking relations
Focus on completed properties; under construction (APF) funding reduced from 40% to 15% of IHL
Robust and scalable Hub and Spoke model resulting in efficient underwriting process
Quality of Loan Portfolio stress tested thrice in the last 3 years through Demonetisation, GST and tight
Liquidity
Digitisation of processes at various stages of loan resulting into increased efficiencies
34
Retail Book Average Ticket size
23.70% 24.74% 25.51%29.10%
25.71%27.35% 28.33%
27.96%
19.17%19.10% 18.66%
17.01%
23.47% 21.14% 20.40% 19.15%
5.53% 5.21% 5.05% 5.01%
31-Mar-17
0.87%1.57% 0.86% 1.60%
31-Mar-18
1.40%0.65%
31-Mar-19
0.56% 1.22%
31-Dec-19
Average Ticket Size Range
~74% of retail loans below the ATS of INR 1 Crore
5-10 Crore 1-5 Crore 50-100 Lakh 25-50 Lakh Up to 25 Lakh10-15 Crore>15 Crore
35
Key Loan Profile
Data as on 31-Dec-19
Individual Housing Loans
Mortgage of Property Financed
INR 30 Lakh
(US$ 42.1k)
71%
72% : 28%
Mortgage of Property Financed
INR 48 Lakh
(US$ 67.3 k)
49%
19% : 81%
Focus on Mass HousingRobust Credit Underwriting
Process
Salaried vs Self-
Employed
Weighted Average
Loan to Value (at
Origination)
Primary Security
Average Ticket Size
Retail Loan Against Property
36
Corporate Book
37
Corporate Book Summary
Product SegmentAUM
(INR Crore)% of AUM
Unique Corporate
houses ATS
INR Crore
(US$ mn)
No. of Unique
Corporate houses
No. of Loan
Accounts
Construction Finance 10,733 12%145.8
(20.4)
150
180
Corporate Term Loan 3,126 4%98.8
(13.9)66
Lease Rental Discounting 1,534 2%116.1
(16.3)19
26%
28%
46%
North
South
West
Geographical Distribution City Concentration
Funded over 150,000 sq mtr of saleable area
87%
13% Top 7 markets
Others
78%
16%
4%
1% 1%
Upto INR 1 Crore 1-3 Crore 3-5 Crore 5-8 Crore > 8 Crore
38
Corporate Book – primarily exposed to Mass Housing
Data as on 30-Sep-19
Bifurcation of Units funded by ticket size
Includes Construction Finance and Corporate Term Loan
39
Corporate Book Risk Buying and Review Mechanism
Risk Buying
• External valuation and legal title checks to supplement inhouse expertise
• Centralised team with specialisation across Acquisition, Technical, Legal, Credit, Operations
• Effective risk management with segregation of responsibilities
• Stress test at the start of a relationship with clear guidelines
• Construction linked disbursement
Credit Covenants
• Minimum Average Security Coverage Ratio of 1.5x
Weighted average as on 31-Dec-19 is 2.25x
• Average Cash Receivable Coverage (net off project expense) of 1.5x
• Collections through escrow mechanism
Monitoring
• Fund utilization, sales velocity, collection efficiency and escrow discipline
• Continuous Monitoring
At the time of every subsequent disbursement
RAG analysis on a regular basis; presented to the Board
• Helps in early warning signals to take timely corrective measures
40
Corporate Book Approval Process
Committee of Management
(Managing Director, Executive Directors and CFO)
Managing Director
Executive Directors
(Business and Risk)
Centralized Underwriting, Technical, Legal and Operations team at Central Support Office (CSO)
CCB: Credit Committee of Board
CCB
(Includes 3
independent Board
members &
Managing Director)
Robust loan approval process with >85% loans approved by Credit Committee of the Board
41
Construction Finance Loan Stages
Stage I Stage II Stage III Stage IV Stage V
Ris
k / P
ricin
g
Stage I Stage II Stage III Stage IV Stage V
25%
16%59%
Completed
Near Completion
Under Construction
PNB Housing Construction Finance Book
Real Estate Project Lifecycle
Land aggregationUsage, Conversion and
Land registration
Approvals from
competent authorities Post Launch Apartment Inventory
Conservative lending process with over 99% of Construction Finance loans funded at Stage IV
42
Corporate Term Loans and Lease Rental Discounting
• Constitutes 2% of AUM
• Spread across 14 reputed
developers
• Presence in 8 large cities
• 100% of LRD are backed by leased
out commercial office building with
multiple tenants
• Class “A” property and tenants
Lease Rental Discounting
• Constitutes 4% of AUM
• Spread across 49 reputed
developers
• Top 7 markets contributes over 87%
• Residential : Commercial – 60:40
• Earmarked/Identified cashflows
Corporate Term Loans
43
Corporate Book Stretched Exposures under Corrective MeasuresE
xp
osu
re
iden
tifi
ed
thro
ug
h
Ea
rly w
arn
ing
Sig
na
ls
4 large* Exposures under GNPA
Exposure 1:
• Project scope changed due to increase in FSI
• Under discussion with the co lenders and promoters; sufficient receivables available in the
project
Exposure 2:
• Slow sales and delay in infrastructure
• Ensured remoteness to bankruptcy; discussions ongoing to get funds and restart the project
Exposure 3:
• Slower construction due to delay in completion of municipal infrastructure and inturn sales;
Security coverage of ~3.5 times
• Another developer is in the process of taking over the project; expect cure by end of
FY2020
Exposure 4:
• Under Litigation at corporate level; Security coverage of over 2.5 times
• Developer under the structured payment plan, made partial payment; expect cure in
FY20
Weighted
Average
Security
Coverage of
around 2x
Outstanding on these exposures reduced by 9% from 31-Mar-19 to 31-Dec-19
ECL Provision at 37%; additional Steady State Provision of INR 169 core
2 Key Corporate Book Exposures
Issue:
• Increase in FSI resulting in scope change
• Aberration due to litigation
Status:
• Stronger partner expected to be on Board through sale or JV
• Sale of land parcels underway to potential buyers to clear dues
Weighted
Average
Security
Coverage of
over 2x
Gro
ss
No
n P
erf
orm
ing
As
se
ts
* refers to more than INR 10 crore
44
Operational and Financial Performance
45
Well Diversified Resource Profile
Credit Rating
• Fixed Deposit has been rated “FAAA” by CRISIL. The rating of “FAAA” indicates
“High Safety” with regards to the repayment of interest and principal.
• Commercial Paper is rated at “A1(+)” by CARE & CRISIL and Non-Convertible
Debenture (NCD) are rated at “AA+” by CARE, India Ratings, CRISIL and ICRA.
• Bank Loans (Long Term) is rated at “AA+” by CARE and CRISIL.
Access to a Diverse Base of Funding
1 Crore = 10 million
Relationships with multiple lending partners
9 Mutual
Funds
31 Pension Funds
27 Insurance
Companies
2 Multilateral
Agencies
31 Banks
504 Provident
Funds
5 Foreign Portfolio
Investors
7.67% 8.80% 12.88%19.51%
37.73% 37.52% 27.97%22.34%
11.32%17.48%
9.57%
25.86%19.47%
17.23%18.79%
3.92%
5.69%6.12%
6.39% 7.73%18.20% 22.93%
7.12% 6.54% 8.45% 7.36%
31-Dec-1931-Mar-18
2.47%
31-Mar-1931-Mar-17
2.96%
As on
(INR Crore)Borrowings Assignment
Total
Resource
31-Mar-17 35,657 2,961 38,618
31-Mar-18 54,268 5,238 59,506
31-Mar-19 72,362 10,699 83,061
31-Dec-19 70,559 17,103 87,662
Over 2,00,000
Deposit Account
(INR Crore)
NHB Refinance Loan from Banks ECBs
Deposits CP NCDs Direct Assignment
46
Margin Analysis
Average Cost of BorrowingsAverage Yield Spread
Gross Margin
3.34%
FY19*FY17 FY18* 9MFY20*
3.27%3.50% 3.31%
10.35%
9MFY20*FY18*
10.76%
FY17
10.86%
FY19*
10.24% 7.70%
9MFY20*FY17 FY18* FY19*
8.55% 8.30%8.00%2.54%
FY17 FY18*
2.21%
FY19*
2.35%
9MFY20*
2.56%
FY19*FY18*FY17
3.19%
9MFY20*
2.97% 3.11%2.93%
NIM
Ratios are calculated on Monthly Average
Gross Margin is net of acquisition cost
*As per IndAS
For the calculation of ratios P&L numbers for FY18, FY19 & 9MFY20 are as per Ind AS
47
Operating Leverage playing out with Better Return Profile
Return on Asset Return on Equity
FY19*FY17
17.44%
14.92%
FY18*
14.20%
9MFY20*
14.99%
FY17 FY18*
0.65%0.73%
FY19*
0.61%
9MFY20*
0.57%19.61%
9MFY20*FY17
17.11%
FY18* FY19*
22.43%
17.22%
1.61%1.56%
FY17 FY18* FY19*
1.46%
9MFY20*
1.44%
Cost to Income RatioOpex to ATA Ratio
Ratios are calculated on Monthly Average
*As per IndAS
Opex to ATA is calculated as Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisition Cost – ESOP cost - CSR cost)/Average Total Assets as per Balance sheet
For the calculation of ratios P&L numbers for FY18, FY19 & 9MFY20 are as per Ind AS
48
CRAR and Gearing
Average Gearing (x)
Ratio is calculated on Monthly Average
Based on IGAAP numbers
*Average Gearing is based on IndAS networth
8.72
7.60
9.30 8.97
31-Mar-17 31-Mar-19*31-Mar-18* 31-Dec-19*
3.92%
5.14%
31-Mar-18
12.75%16.48%
31-Mar-17
2.98%
11.00%
31-Mar-19
2.97%
14.09%
31-Dec-19
21.62%
16.67%
13.98%
17.06%
Tier 2 Tier 1
Capital to Risk Asset Ratio
49
Shareholding
50
Shareholding
Top Shareholders
General Atlantic Singapore Fund,
Franklin Templeton MF, Varde Holdings,
Fidelity International, Malabar
Investments, Auburn Ltd, Vanguard,
Reliance Capital MF, Birla MF, Blackrock
(ETF)
Outstanding Shares – 16,81,68,158 shares
Included in
“MSCI Global Small Cap Index” in November 2018
32.65%
32.23%
23.19%
4.48%
4.13%2.43% 0.89%
Shareholding as on 27-Dec-19
Promoters Quality Investment Holdings Foreign Inst. Investors
Mutual Funds Public & Others Bodies Corporates
Financial Institutions / Banks
51
Detailed Financials and Valuations
52
Consolidated Profit & Loss Statement
Particulars (INR Crore) Q3 FY20 Q3 FY19 YoY Q2 FY20 QoQ 9M FY20 9M FY19 YoY FY19
Interest Income 1,890.4 1,764.1 2,015.9 5,885.6 4,900.0 6,792.9
Add: Net gain on fair value changes 32.5 51.8 24.0 95.9 78.5 128.9
Add: Income on derecognized (assigned) loans 104.2 152.4 109.9 333.4 214.2 308.1
Less: Finance Cost 1,461.0 1,410.3 1,521.3 4,495.0 3,738.9 5,116.4
Net Interest Income 566.1 558.0 1% 628.5 -10% 1,820.0 1,453.8 25% 2,063.5
Add: Fees and commission Income 47.7 109.5 80.0 220.5 341.4 449.4
Less: Fees and commission expense 1.0 13.0 2.7 7.1 46.7 54.6
Add: Other Income 0.0 0.7 0.6 2.3 0.9 3.9
Gross Income 612.8 655.2 -6% 706.4 -13% 2,035.7 1,749.4 16% 2,462.2
Operating Expenses
Less: Employee Benefit Expenses 58.9 81.1 71.0 197.8 212.6 303.9
Less: Other Expenses 56.8 54.8 41.1 151.7 146.5 203.6
Less: Depreciation and Amortisation 18.1 7.6 16.8 51.3 22.2 31.4
Pre Provision Operating Profit 479.0 511.7 -6% 577.6 -17% 1,634.8 1,368.1 19% 1,923.3
Less: Impairment on financial instruments & Write-offs
(Expected Credit Loss)180.8 70.1 151.6 496.5 178.8 188.9
Profit Before Tax 298.2 441.6 -32% 426.0 -30% 1,138.2 1,189.3 -4% 1,734.4
Tax Expense
-Current Tax 91.2 117.6 72.1 301.3 369.8 503.5
-Deferred Tax -30.0 21.1 -13.0 -51.3 7.7 39.4
Less: Total Tax Expense 61.2 138.6 59.1 249.9 377.6 542.9
Net Profit after Tax 237.0 303.0 -22% 366.9 -35% 888.3 811.8 9% 1,191.5
Add: Other Comprehensive Income 43.2 -72.6 -43.5 26.7 -71 -102.3
Total Comprehensive Income 280.2 230.4 323.3 915.0 740.8 1,089.2
EPS (Basic) 14.10 18.09 21.82 52.87 48.51 71.19
As per IND AS
1 Crore = 10 mn
53
Consolidated Balance Sheet
Particulars (INR Crore) 30-Sep-19 31-Mar-19
LIABILITIES
1 Financial Liabilities
(a) Derivative financial instruments 172.9 210.8
(b) Payables
(I) Trade Payables
(i) total outstanding dues of micro
enterprises and small enterprises
(ii) total outstanding dues of creditors other
than micro enterprises and small enterprises114.4 127.2
(c) Debt Securities 21,894.5 29,604.9
(d) Borrowings (Other than Debt Securities) 30,830.2 26,793.2
(e) Deposits 16,549.4 14,023.0
(f) Subordinated Liabilities 1,438.6 1,437.7
(g) Other financial liabilities 1,818.2 2,091.3
Sub Total - Financial Liabilities 72,818.2 74,288.1
2 Non-Financial Liabilities
(a) Provisions 35.5 25.2
(b) Other non-financial liabilities 1,051.1 2,011.8
Sub Total - Non-Financial Liabilities 1,086.6 2,037.0
3 EQUITY
(a) Equity Share capital 168.1 167.5
(b) Other Equity 7,867.2 7,376.4
Equity attributable to equity holders of the
parent8,035.3 7,543.9
Non-controlling interest - -
TOTAL – EQUITY & LIABILITIES 81,940.1 83,869.0
As per IND AS
1 Crore = 10 mn
Particulars (INR Crore) 30-Sep-19 31-Mar-19
ASSETS
1 Financial Assets
(a) Cash and cash equivalents 4,330.1 4,034.0
(b) Bank Balance other than (a) above 0.1 0.1
(d) Trade Receivables 27.4 38.8
(e) Loans 74,269.1 74,287.9
(f) Investments 1,917.0 4,560.7
(g) Other Financial Assets 696.1 513.0
Sub Total - Financial Assets 81,239.8 83,434.5
2 Non - Financial Assets
(a) Current tax assets (Net) 143.9 115.6
(b) Deferred tax Assets (Net) 65.3 61.0
(c) Investment Property 0.8 0.6
(d) Property, Plant and Equipment 77.8 78.3
(e) Capital work-in-progress 11.3 3.8
(f) Other Intangible assets 160.2 24.2
(g) Intangible assets under development - 1.4
(h) Other non-financial assets 37.8 18.5
(i) Assets held for sale 203.1 131.1
Sub Total - Non - Financial Assets 700.3 434.5
TOTAL - ASSETS 81,940.1 83,869.0
54
Saksham – Contributing to the Society
55
Glimpses of Social Interventions
Enhancing Human Potential
• Partnered with The Confederation of Real Estate Developers
Association of India (CREDAI) to conduct Onsite & Offsite skill
enhancement training programmes for construction workers
Reaching Out, Reaching Far
• Collaborated with various NGOs and real estate developers to
establish 52 day care centres on various construction sites
• Children of construction workers are provided with education,
hygiene and nutrition at these day care centres
Investing in Education
• Adopted two schools with VIDYA to provide quality education to
the underprivileged children
• Scholarship program for underprivileged children
• In partnership, initiated a badminton training programme for
sports development in Government schools
Improving Access to Health Care
• Supported operational cost to run cancer patient helpline and
outreach clinic for the patients
• Launched a reproductive health and hygiene programme for
young adolescent girls in five villages in UP
• Partnered with HelpAge India for mobile health unit
Incorporated Pehel foundation to implement various CSR programs
56
Winning Awards & Accolades
Mr. Nitant Desai
awarded amongst
Top 100 CIOs of
India for the fourth
consecutive year
Recognized at the
prestigious 6th CSR
Impact Awards,
organized by CSRBOX in
association with Dalmia
Bharat
Awarded for Excellence
in Project Management
2019 by Talisma(leading
provider of digital
customer) amongst
1,700 existing clients
Once again, awarded
Housing Finance Firm
of the Year at the 11th
Annual Estate Awards in
Delhi.
Bagged Gold in
‘Home Loan
Provider of the
Year 2018’
Won Silver for
Annual Report
FY2017-18
Mr. Sanjaya Gupta
recognised as One of
the ‘Most Promising
Business Leaders of
Asia 2019’ at the
Economic Times’ Asian
Business Leaders
Conclave.
Conferred bronze
award at the SKOCH
Awards 2018. The
award was felicitated
for µConnect, a
collaborative service
platform for
underwriting partners.
Winner at TheEconomic TimesInnovation TribeAwards 2018; winningtrophy in BFSI categoryfor its innovative digitalsolution iBox.
Awarded for Best
Customer Engagement
Initiative of the Year- by a
HFC and Best CSR
Practice of the Year
Felicitated as winner for
Excellence in Operations
at the IDC India Insights
Awards 2019 held in
Bengaluru
Recognized for the second
time at the prestigious The
Economic Times Best
BFSI Brands 2019 held at a
grand event in Dubai.
57
Management Team…
58
…with Extensive Industry Experience
Age : 47 Years
No. of Years with
PNBHF : 7 Years
Prior Engagements :
IndusInd Bank
ABN AMRO Bank NV
ICICI Bank Limited
Age : 47 Years
No. of Years with
PNBHF : 1 Year
Prior Engagements :
Xander Finance, Au
Small Finance Bank,
ICICI Prudential Life
Insurance, Deutsche
Bank
Age : 54 Years
No. of Years with
PNBHF : 7 Years
Prior Engagements :
Religare Finvest Ltd
GE Money Indiabulls
Financial Services
Shaji Varghese
ED - Business Development
Kapish Jain
Chief Financial Officer
Ajay Gupta
ED - Risk Management
Age : 57 Years
No. of Years with
PNBHF : 8 Years
Prior Engagements :
HDFC Standard Life
Insurance, Union National
Bank, ICICI Bank
Age : 56 Years
No. of Years with
PNBHF : 24 Years
Age : 53 Years
No. of Years with
PNBHF : 8 Years
Prior Engagements :
ARMS (Arcil)
Indian Army
Nitant Desai
Chief Centralised Operation &
Technology Officer
Sanjay Jain
Company Secretary & Head Compliance
Anshul Bhargava
Chief People Officer
Sanjaya Gupta
Managing Director
Age : 57 Years
No. of Years with PNBHF : 9 Years
Prior Engagements : AIG, ABN Amro Bank N.V. and HDFC Limited
59
…under the Aegis of a Highly Experienced Board
Sunil Kaul
Non Executive Director
Age:
59 Years
Current Position:
MD, Carlyle
Head, SE Asia, FIG,
Carlyle
Shital Kumar Jain
Independent Director
Age:
80 Years
Current Position:
Former Banker &
Credit Head India,
Citi
Nilesh S. Vikamsey
Independent Director
Age:
55 Years
Current Position:
Sr. Partner, Khimji
Kunverji and Co
Past President-ICAI
Sanjaya Gupta
Managing Director
Age:
57 Years
Current Position:
MD, PNB Housing
Finance
Ashwani Kumar Gupta
Independent Director
Age:
65 Years
Current Position:
Financial Consultant
Gourav Vallabh
Independent Director
Age:
42 Years
Current Position:
Professor of Finance,
XLRI
Shubhalakshmi Panse
Independent Director
Age:
65 Years
Current
Position:
Former Banker,
CMD, Allahabad
Bank
R Chandrasekaran
Independent Director
Age:
62 Years
Current Position:
Founder and Former
Executive Vice
Chairman, Cognizant
Sh. Lingam Venkata Prabhakar
Non Executive Director
Age:
57 Years
Current Position:
Executive Director
PNB
Neeraj Vyas
Independent Director
Age:
61 Years
Current Position:
Former Banker,
Dy. MD & COO, SBI
Sh CH. S. S. Mallikarjuna Rao
Non Executive Chairman
Age:
57 Years
Current Position:
MD & CEO of PNB
60
Corporate Governance
Audit Committee (ACB)
It has 3 members, all are independent directors
Nomination and Remuneration Committee (NRC)
Corporate Social Responsibility Committee (CSR)
Credit Committee of the Board (CCB)
It has 4 members, 2 are independent directors and 2 are non-executive directors
It has 4 members, 2 are independent directors, 1 is non-executive director and Managing Director
It has 4 members, 3 are independent directors and Managing Director
Risk Management Committee (RMC)
It has 5 members, 2 are independent directors, 2 are non-executive directors and Managing Director
Stakeholders Relationship Committee (SRC)
It has 5 members, 2 are independent directors, 2 are non-executive directors and Managing Director
Board of Directors
It has 11 members,1 non-executive chairman, 2 non-executive directors, 7 independent directors and Managing Director
61
Key Takeaways
Wide Spread Retail
Distribution Network
and Unique
Operating Model
Wide spread retail
distribution network with
pan India presence and
over 22,000 channel
partners across India
Strong
Balance Sheet
Conservative
provisioning to
withstand challenging
market dynamics
Moderate NPA’s in
a Seasoned Book
Moderate NPA in a
seasoned book with
focus on resolving
stretched corporate
accounts
Diversified
Borrowing Mix with
balanced ALM
Diverse funding mix
with average cost of
borrowing at 8.31%(1)
Improving Cost to
Income Ratio
Operating leverage
playing out, thereby
improving C/I Ratio
1. For 9MFY20
62
Annexure
63
Return to Shareholders
27.5
36.7
50.5
71.2
FY17FY16 FY18* FY19*
3.4
6.0
9.0 9.0
FY16 FY17 FY18 FY19
Book Value Per Share (INR)
Earnings Per Share (INR) Dividend Per Share (INR)
169.1
336.7394.2
450.5495.0
31-Mar-17 31-Mar-19*31-Mar-16 31-Mar-18* 31-Dec-19*
*As per IND AS
64
Employee Efficiency
Loans Outstanding / EmployeeDisbursement / Employee
Total Revenue / Employee Profitability / Employee
0.48
0.62
0.730.82
FY18*FY17FY16 FY19*
21.2324.25
28.99
24.88
FY18FY16 FY19FY17
39.9145.28
49.79 51.05
31-Mar-1931-Mar-16 31-Mar-17 31-Mar-18
3.96
4.59 4.795.30
FY18*FY16 FY17 FY19*
(INR Crore)
Calculated on average number of employee for the year
Average no. of employee for FY19: 1,4501 Crore = 10 mn*As per IND AS
65
Additional Details – Individual Housing Loans
24,868
36,549
48,91550,809
31-Dec-1931-Mar-17 31-Mar-18 31-Mar-19
80%
6%
8%
5%
1%
Home Purchase
Residential Plot
Residential Plot cum Constn
Self Construction
Home Improvement/Extn
(INR Crore)Individual Housing Loans
59% of AUM
66
Glossary
ATA Average Total Assets
ATS Average Ticket Size
AUM Asset Under Management
BVPS Book Value per Share
C/I Cost to Income
CRAR Capital to Risk Asset Ratio
CP Commercial Paper
CTL Corporate Term Loan
DPS Dividend per Share
DSA Direct Selling Agents
ECB External Commercial Borrowing
ECL Expected Credit Loss
EIR Effective Interest Rate
EPS Earning Per Share
EWS Economically Weaker Section
GNPA Gross Non-Performing Asset
HFCs Housing Finance Companies
LAP Loan against Property
LIG Low Income Group
LRD Lease Rental Discounting
NCDs Non-Convertible Debentures
NII Net Interest Income
NIM Net Interest Margin
NNPA Net Non-Performing Asset
NPA Non-Performing Asset
NRPLs Non-Residential Premises Loans
PAT Profit After Tax
PCR Provision Coverage Ratio
ROA Return on Asset
ROE Return on Equity
67
Formulas
Ratios Formulas Used
Average Borrowings (%) Interest Expense / Average Borrowings
Average Gearing Ratio (x) Average Borrowings / Average Net worth
Average Yield (%) (Interest Income + Assignment Income) on Loans / Average Loan Assets
Cost to Income (%)Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisition
Cost – ESOP cost - CSR cost) / (Net Revenue-Acquisition Cost)
Gross Margin (%) Total Net Income excluding acquisition cost / Average Total Assets as per Balance sheet
NIM (%) Net Interest Income / Average Earning Assets
Opex to ATA (%)Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisition
Cost – ESOP cost - CSR cost) / Average Total Assets as per Balance sheet
PCR (%) (ECL Provision + Steady state Provision) as a % of GNPA
ROA (%) Profit After Tax / Average Total Assets
ROE (%) Profit After Tax / Average Net worth
Spread (%) Average Yield - Average Cost of Borrowings
68
Thank You
Company:
PNB Housing Finance Limited
CIN: L65922DL1988PLC033856
Ms. Deepika Gupta Padhi (Head-Investor Relations)
Phone: +91 11 23445214
www.pnbhousing.com
